BOZ MAINTAINS 9.75 P.C. POLICY RATE
THEBank of Zambia (BoZ) has maintained the Monetary Policy rate at 9.75 percent owing to inflation projections expected to remain within target range.
BoZ Governor, Denny Kalyalya, said projections suggest that inflation would remain within the 6-8 per cent target range.
He said this at the Monetary Policy Committee fourth quarter 2018 presentation in Lusaka yesterday.
The Governor said the authority decided to maintain the monetary policy following a predictable inflation rate. Dr. Kalyaya said in 2019 Gross Domestic Product growth is projected at 4.0 percent. "As the Monetary Policy Committee we have decided to maintain the policy rate due to predictable projections of the inflation rate," he said. He expressed concern on slow progress towards fiscal consolidation as reflected in rising domestic arrears, public debt and external debt service.
Dr. Kalyaya said demand for Government securities picked up and was mainly driven by commercial banks and investors appetite for treasury bills. He said inflationary pressures persisted in the fourth quarter of last year, with inflation rising to an average of 8.0 percent from 7.9 percent in the third quarter.
Dr. Kalyaya said in 2019, global growth is projected to decline to 3.5 percent in 2020and attributed this to trade wars between the United States and China.